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What is Common Law of Contracts?

The term „common law“ refers to a legal system that originated in England and is based on case law, or precedent. Common law of contracts is the body of legal principles and rules that govern the formation, interpretation, and enforcement of contracts in common law jurisdictions.

Common law of contracts is different from statutory law, which is created by legislative bodies. Instead, common law is developed by courts through the interpretation and application of previous cases to similar factual situations. This means that common law of contracts is constantly evolving as new cases are decided and previous decisions are reevaluated.

Common law contracts are based on the mutual agreement and understanding between two parties. In other words, both parties must agree to the terms of the contract and understand them in the same way. If there is no mutual agreement or understanding, the contract may be deemed void, and any obligations arising from the contract will not be enforceable.

There are several essential elements of a common law contract, including offer, acceptance, consideration, and intent to be bound. An offer is a proposal of goods or services that one party makes to another. Acceptance is the agreement by the other party to the terms of the offer. Consideration is the exchange of something of value between the parties, such as money or goods. Finally, the intent to be bound is the understanding that both parties intend to enter into a legally binding agreement.

In common law of contracts, there are also several defenses that can be used to challenge the validity of a contract. These defenses include fraud, duress, undue influence, and mistake. If one party can prove that one of these defenses applies, they may be able to avoid their obligations under the contract.

Common law of contracts is an important part of the legal system in common law jurisdictions, including the United States, Canada, and England. Businesses, individuals and organizations should be aware of the principles and rules of common law contracts when entering into agreements with others. It is important to consult with an attorney familiar with the common law of contracts to ensure that one’s rights and obligations are protected.

In conclusion, common law of contracts is an evolving, complex system of legal principles and rules that govern the formation, interpretation, and enforcement of contracts in common law jurisdictions. It is essential to have a clear understanding of the essential elements of a contract and the potential defenses to ensure that obligations under a contract are enforceable. With the help of an attorney, businesses and individuals can navigate the intricacies of common law contracts to protect their interests and ensure compliance with the law.